Canva’s layoff package wins praise on LinkedIn: 6 months’ salary, 12 months’ healthcare, free MacBook and career support
Canva has drawn attention on LinkedIn for the support package it has announced for employees affected by its latest restructuring, with several users praising the company's approach to handling layoffs and providing financial and career assistance to departing staff.
The Australian design platform is laying off or otherwise impacting 1,271 employees, representing 22% of its workforce, as part of a major organisational overhaul. In a November 4 message to employees, co-founder and CEO Melanie Perkins said the company was making significant changes to its organisational structure, team locations and the roles and skills it would need for the future.
The announcement has triggered discussions on LinkedIn, with users highlighting the it. Several described the measures as an example of how companies could approach workforce reductions with greater empathy and consideration for employees.
Canva has announced a range of financial, healthcare and career-related benefits for employees affected by the restructuring.
The package includes:
- Six months' salary: Every affected employee will receive at least six months of salary, inclusive of statutory entitlements, irrespective of their location.
- Healthcare coverage: Employees will receive 12 months of continued healthcare coverage in countries where Canva currently provides it.
- Canva Care: The company's employee assistance programme will continue for 12 months, with coverage extended to family members.
- Career support: Departing employees will receive one-on-one coaching, interview preparation assistance and one year of LinkedIn Premium.
- Resume and interview assistance: Canva is dedicating a significant portion of its Talent Acquisition team to helping employees review their resumes and prepare for interviews.
- Alumni talent directory: An opt-in directory of departing employees will be shared with Canva's investors, partners and wider industry network to help them find new opportunities.
- Keep their MacBooks: Employees leaving the company will be allowed to retain their Canva MacBooks.
- US$10,000 startup grants: Through the Canva Collective Fund, departing employees can apply for US$10,000 grants to start a business or pursue initiatives for their local communities. The company said it would not seek ownership or equity in these ventures.
Canva has also removed the one-year vesting cliff for employees who joined within the past year.
The exit package has attracted considerable appreciation on LinkedIn, with users pointing to the combination of financial assistance and practical career support.
One user wrote: "Canva just showed us that even job cuts can be handled with empathy, thoughtfulness and humanity."
Highlighting the six months of salary, 12 months of healthcare, career assistance, US$10,000 fund and the provision allowing employees to retain their MacBooks, the user said companies could not always prevent layoffs but could choose how they treated people when they left.
"As a company, you can't always prevent layoffs, but you can always choose to treat people with dignity, kindness, and with respect when they leave," the user added, concluding with: "Kudos to Canva for setting an example worth learning from."
Another LinkedIn user described the financial and healthcare benefits as particularly important for employees navigating an uncertain period.
"Very tough news but glad you are considering the humanness of your employees- 6 months pay and health insurance will be a life line for so many over the next few months," the user commented, adding that other companies could learn from Canva's approach as businesses adapt to rapid changes.
A third user called the exit package an example of how companies should support employees affected by workforce reductions.
"Layoffs are extremely tough, but if there was ever an example on how to best support those effected and show that you truly valued and appreciated them, this is it!" the user wrote.
"This should be the bare minimum standard, and I hope more companies will learn from you all," the comment added.
Another LinkedIn user highlighted the combination of salary support, healthcare, career assistance and funding for employees interested in starting something of their own.
"What stands out is how Canva is supporting its people through a difficult time. Six months of salary, healthcare, career support and funding for those starting something of their own," the user wrote, describing the measures as an admirable approach to leadership.
Another user praised the company's communication during the restructuring, saying it demonstrated the importance of acknowledging the human impact, being transparent about difficult decisions and showing empathy and accountability.
"Leadership isn't just about making difficult decisions; it's about how you carry people through them," the user wrote.
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